Wizz Air LON: WIZZ reported a first-quarter loss for fiscal 2027 as higher fuel costs and rapid capacity expansion weighed on unit revenue, while management said results were in line with its previous guidance.
For the April-to-June quarter, the airline posted a profit after tax loss of €198 million. Veronika, who presented the company’s financial results, said roughly €100 million of the impact was tied to higher fuel costs affecting the broader airline industry.
Chief Executive Officer József Váradi characterized the quarter as one of “cost pressure and high growth,” saying the company had performed broadly as expected despite a challenging operating environment.
Capacity Growth Outpaced Market
Wizz Air increased available seat kilometers, or ASKs, by 15% year over year, while seat capacity and passenger volumes rose 25%. The difference reflected a shorter average stage length as the airline expanded domestic flying in Italy and prepared to add domestic operations in Spain, while also reallocating some Middle East capacity into European markets.
Váradi said the company’s domestic-market strategy should improve the economic productivity of its aircraft by allowing the same assets to generate more seats. He said the current period marks the final phase of elevated delivery-driven growth following Wizz Air’s renegotiated Airbus delivery agreement. Growth is expected to moderate to roughly 10% to 12% after the first half of fiscal 2027.
Load factor was flat year over year, even as the company expanded seat capacity sharply. However, fares declined 8% in the first quarter, which management attributed in part to the immaturity of new capacity and the need to stimulate demand. Váradi said the result compared favorably with an intra-European market that he said was down about 3% to 5%.
Ian, who discussed the airline’s revenue performance, said Wizz Air had nearly 300 routes less than one year old, compared with roughly 70 to 80 such routes a year earlier. He said the company expects margins to improve as those routes mature.
Management also cited changes in consumer booking behavior. Ian said booking patterns normalized somewhat in May and June after a period of more last-minute purchases, but short-term booking activity increased again in July and August.
Fuel, Fleet Transition and Cost Initiatives
Wizz Air said it reduced ex-fuel costs by 2% in the first quarter, supported by lower staff costs, crew efficiency, improved airport unit costs and reduced disruption expenses. The company said improved operational performance reduced compensation costs and eliminated the need for wet leases during the period.
Still, management expects ex-fuel costs for the first half to rise by a low-single-digit percentage rate because of temporary expenses related to returning older chief executive officer, or “ceo,” aircraft from the fleet. Those aircraft carry higher maintenance and depreciation costs as they approach redelivery, according to Veronika.
Wizz Air expects to return 24 ceo aircraft this year, following 16 redeliveries last year. Management said depreciation and maintenance costs should decline as the older aircraft leave the fleet and the airline transitions toward Airbus neo aircraft. Váradi said 95% of the fleet is expected to consist of A321 aircraft, with the fleet renewal providing structural fuel-efficiency and productivity benefits.
The company also continued to address groundings associated with Pratt & Whitney geared turbofan engines. Váradi said the number of grounded aircraft had fallen to 27 from 41 a year earlier. Wizz Air expects to have its entire GTF-grounded fleet back in service by the end of calendar 2027, although management noted that industry-wide engine maintenance capacity and spare-engine availability remain constraints.
Liquidity and Fuel Hedging
Wizz Air generated positive free cash flow in the quarter and ended the period with €2.2 billion in cash, rising to €2.3 billion in the most recent figure provided by management. The company said its liquidity ratio stood at 37%, or close to 40% based on the more recent cash balance.
Veronika said Wizz Air had hedged 82% of its second-quarter fuel requirements and 62% of expected fuel consumption for the second half of fiscal 2027. The airline has also hedged 39% of expected first-half fiscal 2028 fuel consumption.
Management said its liquidity and hedging position could provide protection if elevated fuel prices persist amid the conflict involving Iran. Váradi said the company is planning on the assumption that fuel prices remain high rather than relying on a rapid resolution.
Second-Quarter Outlook
For the second quarter, Wizz Air expects approximately 20% ASK growth, with seat growth remaining higher because of the shorter stage length. Management expects load factor to remain flat year over year.
The company expects revenue per available seat kilometer, or RASK, to decline by only “a couple of percentage points,” an improvement from the 8% decline reported in the first quarter. Ian said fare trends were running between mid-single-digit and high-single-digit declines, while bookings for August and September were ahead of the prior year.
Management said it intends to keep operating its fleet through the winter rather than broadly grounding aircraft, using winter-sun, North Africa and skiing routes to reduce seasonal demand volatility. Váradi said Wizz Air is also monitoring potential market opportunities if financially weaker competitors reduce capacity amid high fuel prices.
Looking further ahead, Váradi said the airline’s priorities are restoring fleet utilization, lowering airport costs, completing the GTF recovery and retiring older aircraft. He said Wizz Air expects those initiatives, together with the maturing of recently launched routes, to support a stronger cost and revenue profile over the next 18 to 24 months.
About Wizz Air (LON:WIZZ)
Wizz Air operates a fleet of over 250 Airbus A320 and A321 aircraft. A team of dedicated aviation professionals delivers superior service and very low fares, making Wizz Air the preferred choice of 63.4 million passengers in our 2025 financial year. Wizz Air is listed on the London Stock Exchange under the ticker WIZZ. Wizz Air has also been recognized as the "Most Sustainable Low-Cost Airline" between 2021-2025 by World Finance Sustainability Awards. In 2025, Wizz Air topped the major airlines' emissions ranking, as presented by Cirium, an aviation analytics company, thanks to its work reducing emissions intensity.
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